Christmas Gifting
GIFTS THAT KEEP ON GIVING
Many years ago, my wife made a Christmas wish to Santa asking, ‘give me a big fat wallet and a slim waist and don’t get it the wrong way around like you did last year’.
On a more serious note, gifting to children and grandchildren through a Junior ISA is a great way to start then saving. Also, Premium Bonds are great gifts for kids they’ll start to get hooked when they start winning.
Another idea for youngsters is to start a pension for them. Did you know they’re allowed to pay £3,600 gross per annum from birth, so if you put £2,880 to kick start their account the tax man will add £720!
If they’re over 18 you could help them to open an account with a broker like Hargreaves Lansdown and place a sum in the account for them so they can learn to trade in funds and shares, that’s how many entrepreneurs are made! You might even get them an investment guide for beginners.
I’ve always liked the idea of taking your kids to an auction, Rogers Jones are the main auctioneers in Wales today. The exciting thing is bidding for art works and antiques, but you will see all manner OF memorabilia to interest everyone including vintage toys, Harry Potter books and posters and Star Wars collectors’ items etc. If they’re into sport, then Cardiff City jerseys or Welsh rugby shirts and catalogues are regularly on sale. If you can’t go, then you could see it all ‘live’ online and also bid, I guarantee its nerve wracking! Go to rogersjones.co.uk for past sales.
At Christmas most monetary gifts will fall within HMRC’s allowable limits, more generous or ongoing transfers can cause tax issues for the recipient, so in this case some planning is needed.
Now is the season to make gifts to charities too. Don’t forget to fill out the Gift Aid form to boost the amount of cash the charity receives, £100 is made up to £125. But get this, many of our readers are 40% taxpayers so they get to claim back £25 too so their £125 gift only cost £75!
Gifts to charities in your Wills are also free from Inheritance Tax and if the gift is large enough reduces the amount of tax on the rest of your estate.
Merry Christmas from Pippa, Sarah, Mia, Jeremy and Philip at Abacus Assurance and be sure to contact us in the New Year for help with those financial resolutions.